Growing consumer interest in craft and premium beers, growing disposable income, innovations in taste and brewing techniques, and expanding distribution channels will continue to drive the beer market.
According to the latest report "Global Beer Market 2024-2034 Opportunity Analysis and Industry Forecast" released by Allied Market Research, the beer market was valued at $650.2 billion in 2023 and is expected to reach $873 billion by 2034, growing at a CAGR of 2.7% from 2024 to 2034.
What's driving this growth?
The growth of the beer market is driven by the growing consumer interest in craft beer and premium beer, which is driving the demand for different flavors and unique brewing styles. Rising disposable incomes and the shift to premiumization are enabling consumers to explore higher quality beer options. Innovations in brewing technology, such as the development of new flavors and styles, have attracted adventurous drinkers and increased market appeal. Beer is becoming increasingly accessible by expanding distribution channels, including online platforms and specialty stores. In addition, changing social trends and a greater emphasis on social experiences have also contributed to the increase in beer consumption. The combination of these factors has driven the continued growth and vitality of the global beer market.
Lager, with its wide appeal and acceptance, has always been a major segment of the beer market. Lager beer is usually fermented at a lower temperature with barrel bottom yeast, and has a smooth, crisp taste that pairs well with a variety of foods, and this versatility has contributed to its popularity in different cultures and regions. In addition, lager beer is usually produced by major breweries, ensuring strong brand recognition and an extensive distribution network.
The rising disposable income of consumers and the growing preference for high-quality products are driving the demand for high-end beers that offer premium ingredients and unique brewing techniques. High-end beers often have unique tastes, processes, and higher alcohol content, attracting consumers looking for a more refined and varied drinking experience. This trend is also being driven by the rise of craft beer, which has contributed to the growth of the premium segment due to the focus on quality and innovation among craft beer producers.
The Asia-Pacific market continues to lead
Asia-Pacific is the most dominant beer market due to several key factors. First, it has a large and rapidly growing population. Countries such as China and India contribute significantly to total beer consumption, and the increase in disposable income and urbanization in these countries has led to increased consumer spending on alcoholic beverages, including beer. In addition, the region's cultural acceptance and the integration of beer into social and celebratory occasions have further boosted demand. In China, for example, beer is the main drink in the city's nightlife and traditional festivals.
In addition, the Asia-Pacific market is characterized by strong expansion by local brewers and multinationals. This growth is supported by the emerging middle class, which prefers premium and imported beers, driving the diversification of beer offerings. The favorable regulatory environment in certain countries has also encouraged the production and consumption of beer. Innovations in distribution channels, especially in e-commerce platforms, have made beer more accessible to a wider audience. In addition, strategic marketing campaigns tailored to local tastes and preferences have succeeded in capturing consumer interest. All these factors together contribute to the dominance of the Asia-Pacific region in the global beer market forecast.
Non-alcoholic beer becomes the "main thing"
The non-alcoholic beer market is set to grow significantly over the next decade, driven by health trends, innovative product offerings, and increasing consumer acceptance.
The non-alcoholic beer market has experienced significant growth in recent years, and a key driver is the growing health consciousness of consumers. As people become more aware of the adverse effects of excessive drinking, many are seeking healthier alternatives, a shift that is especially pronounced among millennials and Gen Z. In addition, the inclusiveness of alcohol-free beer appeals to those who don't drink for personal, religious, or health reasons.
Moderation is another strong driving force behind the popularity of non-alcoholic and low-alcohol beers. As society's attitudes towards alcohol abuse change, more and more people are choosing to drink in moderation. Non-alcoholic beer provides a social way to enjoy drinking while promoting responsible consumption.
Innovation in brewing technology also plays a crucial role. Today's non-alcoholic beers are carefully brewed to reflect the taste and experience of traditional beer, which is a significant step forward from the past. In the past, non-alcoholic beers tended to lack the depth and complexity of alcoholic beers on the palate.
Major beer producers have adopted strong strategies to expand their global footprint, which has led brand owners to introduce new non-alcoholic products into their portfolios to meet consumer demand. For example, many companies have introduced fruit-flavored, non-alcoholic beers to provide the added benefit of taste and quality, as well as new products such as gluten-free, low-sugar and organic. The market potential of non-alcoholic beer has also attracted some companies to join the category through mergers and acquisitions, partnerships, and joint ventures. In addition, the analysts also found that the launch of non-alcoholic craft beers is also further driving the market growth.
Of course, the market is still in its infancy and has great potential for growth and innovation, as it still faces challenges such as the loss of flavor during the dealcoholization process, higher production costs, and misconceptions about non-alcoholic beer. As this segment expands, it will undoubtedly continue to reshape the beverage industry, offering exciting opportunities for new flavors, new technologies, and new experiences.